Have you recently set up a limited company? It is a legal requirement to open a limited company bank account. If you are classed as an LLC or an LLP, you are a separate legal entity from your business. This means that your finances must be separated into a personal account and a business account.
In comparison, a sole trader can legally continue to use their own personal account for business purposes. However, there are many benefits to opening a business bank account.
Whether you are looking to pay staff wages, make electronic payments or pay in cheques, almost every transaction requires a bank account. In addition to managing your finances, a limited company bank account will provide a range of benefits.
For example, your customers will be able to pay you using your business name, which will improve your credibility. You will also be able to access a range of products, such as integrated accounting software and personal business managers.
There are a variety of bank account types available, including the traditional high-street bank accounts and alternative challenger banks. The challenger banks are providing an alternative to traditional high-street branches, by offering online only accounts. Although the accounts are designed to be accessed online, many still offer counter services through the Post Office.
If an account suits your specific requirements, you will be able to visit the banks website using the link provided. If you are opening an online limited company bank account, the entire application form can be completed online. If you have decided to open a traditional high-street account, you can begin the application online. However, the bank will require you to make an appointment to visit a branch and provide a range of documents.
To open a business bank account for a limited company, you will need the following:
There are some online banks which can open instant business accounts, although traditional banks will take longer. If you already hold a business account, you may be interested in switching banks. The majority of banks are part of a switch guarantee scheme, which will mean your account switches within 7 days.
We understand that it can be time consuming to ensure your business benefits from the most competitive financial products. To find out more about our range of business comparison services, please contact our team today.
Taking the time to compare the available limited company bank accounts will help you find the best option for your business. Firstly, you will need to decide which bank account features are important to your business. For example, are you looking for an online bank or a high-street bank with branches? Do you need access to credit, such as an overdraft or credit card? Would your business benefit from free foreign transactions?
With so many potential limited company bank accounts available, it can be difficult to know which is the best. To help you find the ideal account, we have developed our bank account comparison service. To find the ideal account, simply use our quick filters to narrow down the list of potential accounts. You will then be able to compare like for like accounts, based on their key features and monthly cost.